In addition to basic calculation functions, Excel also provides data analysis tools that allow you to find the R2 of two lines with an Excel formula. R2, or R-squared, is the relationship between two ...

In Part 3 of our series on modern portfolio theory, we discuss how R-squared can determine the usefulness of other MPT statistics. In a recent article, we went over how beta and other modern portfolio ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...

R-squared – or the coefficient of determination – is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

Microsoft Excel is a powerful tool for carrying out complex calculations. If you work on Excel, then you might come across performing mathematical operations almost every day. Sometimes, we face ...

Most investors have probably never heard of the R-Squared Growth Rate. And even fewer know what it means. (Ten years ago, you could count me as one of them.) But, now I do. I want you to know too. So ...

Let's understand what is R-Squared in a mutual fund factsheet. 1. R-squared is a statistical measure that indicates how closely a mutual fund’s performance correlates with a benchmark index. 2. The ...

Recently I've heard a number of otherwise intelligent people assess an economic hypothesis based on the R2 of an estimated regression. I'd like to point out why that can often be very misleading. The ...